Línea Directa Aseguradora, S.A., Compañía de Seguros y Reaseguros' (BME:LDA) 3.2% loss last week hit both individual investors who own 30% as well as institutions

Key Insights

• Significant control over Línea Directa Aseguradora Compañía de Seguros y Reaseguros by private companies implies that the general public has more power to influence management and governance-related decisions
• The top 6 shareholders own 55% of the company
• Institutional ownership in Línea Directa Aseguradora Compañía de Seguros y Reaseguros is 28%

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

A look at the shareholders of Línea Directa Aseguradora, S.A., Compañía de Seguros y Reaseguros (BME:LDA) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private companies with 30% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While institutions, who own 28% shares weren’t spared from last week’s €46m market cap drop, private companies as a group suffered the maximum losses

In the chart below, we zoom in on the different ownership groups of Línea Directa Aseguradora Compañía de Seguros y Reaseguros.

View our latest analysis for Línea Directa Aseguradora Compañía de Seguros y Reaseguros

What Does The Institutional Ownership Tell Us About Línea Directa Aseguradora Compañía de Seguros y Reaseguros?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Línea Directa Aseguradora Compañía de Seguros y Reaseguros. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Línea Directa Aseguradora Compañía de Seguros y Reaseguros, (below). Of course, keep in mind that there are other factors to consider, too.

Línea Directa Aseguradora Compañía de Seguros y Reaseguros is not owned by hedge funds. Our data shows that Cartival S.A. is the largest shareholder with 20% of shares outstanding. For context, the second largest shareholder holds about 14% of the shares outstanding, followed by an ownership of 5.3% by the third-largest shareholder.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Línea Directa Aseguradora Compañía de Seguros y Reaseguros

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We note our data does not show any board members holding shares, personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public-- including retail investors -- own 27% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 30%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Public Company Ownership

Public companies currently own 14% of Línea Directa Aseguradora Compañía de Seguros y Reaseguros stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Línea Directa Aseguradora Compañía de Seguros y Reaseguros better, we need to consider many other factors. Be aware that Línea Directa Aseguradora Compañía de Seguros y Reaseguros is showing 1 warning sign in our investment analysis , you should know about...

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.